3 min read.Updated: 30 Apr 2019, 04:44 PM ISTBindu Ananth
Without focus by regulators on mis-sale, we put confidence of retail customers at risk
Ask any retail consumer of financial services and you will find at least one instance where she or someone she knows experienced an act of mis-selling by a bank representative. Until recently, these experiences were not getting formally captured in the regulatory radar. A 2017 amendment to the RBI Banking Ombudsman Scheme seeks to change this. This amendment widened the scope of the scheme to include violations of the RBI guidelines on para-banking activities through improper, unsuitable sale of third-party financial products. While it is unclear why such a category does not include unsuitable sale of banks’ own products, for the first time there is acknowledgement that banks can do harm with respect to their selling practices. It, however, severely underestimates the magnitude of the same.
Recommended For You
Select your Category
Internet Not Available
Wait for it…
Log in to our website to save your bookmarks. It'll just take a moment.